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What is its weighted average cost of capital

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Question - The Alpha Company has issued a total of 36,000,000 shares of common stock at par (its value to the firm is $36,000,000. The dividend yield is 6.5%. The company also has $24,000,000 of bonds (also sold at par) with a coupon rate of 5%. The tax rate for Alpha is 30%. What is its weighted average cost of capital (WACC)?

Reference no: EM133037314

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